Exchange Rate Variability and Exports: Evidence from Textile and Sports Goods Industries of Pakistan

Abstract

The present study is different from previous studies in several aspects. Firstly, two different major sectors (Textile & Sports exports) of Pakistan exports are chosen to calculate the impact of exchange rate variability on these specific sectors instead of taking aggregate exports. Secondly, the aim of the study is not only to calculate effect of exchange rate variability on two sectors exports but also to check either two different sectors are affected same or different with this variation. Thirdly, annual data is taken for all the variables to check the correlation and to examine the impact of exchange rate variability on exports.This research also views the short-run characteristics by which exports meet on their long-run balance. This research is important since it has effects for the selection of exchange rate program and performs of interchange rate plan. Our commercial goods can contend besides endure in the international industry, on offering uniform-playing arena. Another slowing aspect is the failing of controlling department’s involved to develop a quick return program of sales tax.Simple regression model is used to examine the impact of exchange rate variability on Textile and sports goods exports individually as well as on aggregate of these two sectors of Pakistani Export.

Keywords:     Exchange Rate, Textile Exports, Sports Goods Exports